Possible consequences of a buyer missing the closing deadline on a short sale:
The foreclosing lender may:
(1) raise the purchase price, or
(2) deny an extension and cancel the entire agreement with no recourse for the buyer, or
(3) delay approval of an extension by weeks or months, or
(4) push the property to get sold and lost at the foreclosure auction, or
(5) approve an extension to allow the buyer to close with no change of price or terms.
The paradox is the foreclosing lender can drag out their approval for months, but when they give an approval they want the buyer to close fast, typically within 30 days.
Is it fair? NO.
Is it reality? YES
Therefore, the buyer, the buyer's Realtor and most importantly, the buyer's loan officer must move diligently and quickly through the closing process. Once the short sale acceptance letter is received, everyone must do what they can to remove barriers and get it done.